Which EV would you get?

[Buck]

I didn’t say this wasn’t happening.


The question is whether a proportion of those orders (20 - 40% was mentioned) will result in people selling their vehicles in a very short period of time after purchase and the reality is such a decision would incur a significant loss.

I would wager that many will perhaps have dislikes about the car but not necessarily sufficient to make them sell it.

Also, a large number of vehicles bought by private buyers will be bought via PCP (80-90%!) or leased so coming out of the deal in these instances can be prohibitively expensive.

 

[Drago]

Rented via PCP.

 

[ivegotabike]

Rented via PCP.

If the objective is a new EV, then PCP / Lease seems like a sensible way to proceed.

On all 4 that I have leased so far (with a 5th on the way), the depreciation was much larger over the life of the lease than the cost of the lease. I would have been considerably worse off if I had chosen to buy. I expect that will turn out to be the case for vehicle 5 too: it would have to depreciate by less than 31% in three years to match the lease. I don't see that happening to many EVs, so it is a risk I am prepared to run.

Whether having a new car so frequently is financially sensible in the first place... that's a separate thread!

 

[Jameshow]

https://theconversation.com/job-cut...orporate-strategy-is-not-always-enough-291706

Interesting take on JLR

 

[Jameshow]

If the objective is a new EV, then PCP / Lease seems like a sensible way to proceed.

On all 4 that I have leased so far (with a 5th on the way), the depreciation was much larger over the life of the lease than the cost of the lease. I would have been considerably worse off if I had chosen to buy. I expect that will turn out to be the case for vehicle 5 too: it would have to depreciate by less than 31% in three years to match the lease. I don't see that happening to many EVs, so it is a risk I am prepared to run.

Whether having a new car so frequently is financially sensible in the first place... that's a separate thread!

I looked at leasing and £200+ pm and 12mouths up front was a big chunk of money!
£5k in the first year and 2.4k there after....
4years £12.5k

 

[Mike_P]

I didn’t say this wasn’t happening.


The question is whether a proportion of those orders (20 - 40% was mentioned) will result in people selling their vehicles in a very short period of time after purchase and the reality is such a decision would incur a significant loss.

I would wager that many will perhaps have dislikes about the car but not necessarily sufficient to make them sell it.

Also, a large number of vehicles bought by private buyers will be bought via PCP (80-90%!) or leased so coming out of the deal in these instances can be prohibitively expensive.

No that wasn't the question. I mentioned the 20-40% as showing there would be an element of those ordering a new car without test driving it would equally not like it. The ID
Polo is not the old IC Polo. There will be changes beyond the motor type that a few will not like. Even ifs only 1 or 2% that will be a number of those pre-ordered ones without a tesr drive that will be disposed of quicker than originally intended.

 

[Drago]

If the objective is a new EV, then PCP / Lease seems like a sensible way to proceed.

On all 4 that I have leased so far (with a 5th on the way), the depreciation was much larger over the life of the lease than the cost of the lease. I would have been considerably worse off if I had chosen to buy. I expect that will turn out to be the case for vehicle 5 too: it would have to depreciate by less than 31% in three years to match the lease. I don't see that happening to many EVs, so it is a risk I am prepared to run.

Whether having a new car so frequently is financially sensible in the first place... that's a separate thread!

There is no scenario where PCP is the most cost effective esolution.

Shopping around we could usually lease for little more or even less than PCP, and didnt then have to pay to maintain someone else's car.

If you're looking to own a car then PCP is the most expensive route.

We bought outright. Ill likely well be in my 70s and looking at giving up driving by the time the car expires, and Mrs D will have likely quit before then due to health. Its a big fat chunk of change to find in one go (£53k in our case) but thats it. Divided up over the years, even including maintenance, thats less expensive than any other means of acquiring one, and were not paying interest on the interest. At current prices and rates thwt works out about a quarter to a third the cost of renting one on PCP or leasing, and we still have own an asset - ticket lrices will only riee lver tjme, so in raw mumerical terms themlikely sdenario is itll cost anout one sixth the cost of PCPing over the same period.

Fortunately im not interested in whet the neighbours think or how I look behind the wheel so dont feel the need to change for the sake of it every three years.

PCP and leasing are chuffing expensive. People must be absolutely loaded to keep doing that every month.

 

[Pblakeney]

The cheapest way of getting a car is to buy it at 2 year old with a lot of the depreciation gone and run it till it is a financial write off.
Won’t impress the neighbours but who cares?

 

[Mike_P]

Depends what your end game is over yohe long term as to whether it's the best way to go.

Shopping around we could usually lease for little more or even less than PCP, and didnt then have to pay to maintain someone else's car.

If you're looking to own a car then PCP is the most expensive route.

We bought outright. Ill likely well be in my 70s and looking at giving up driving by the time the car expires, and Mrs D will have likely quit before then due to health. Its a big fat chunk of change to find in one go (£53k in our case) but thats it. Divided up over the years, even including maintenance, thats less expensive than any other means of acquiring one, and were not paying interest on the interest. At current prides and rares thwt works out about a quarter to a third the cost of renting one on PCP or leasing, and we still have own an asset. Fortunately im not interested in whet the neighbours think or how I look behind the wheel.

PCP and leasing are chuffing expensive. People must be absolutely loaded to keep doing that every month.

Thats what it comes down to. If you cannot afford to buy outright what is the form of funding is affordable on a monthly basis the cheapest overall.

The cheapest way of getting a car is to buy it at 2 year old with a lot of the depreciation gone and run it till it is a financial write off.
Won’t impress the neighbours but who cares?

Or wait for a sales lull when dealers are needing to shift new vehicles and will heavily discount so that can meet there targets. Towards the end of a financial quarter is a good time.

 

[Drago]

Yet people can afford to pay PCP, the far more expensive option.

If you cant afford the chunk get a Tesco loan and do it that way, likely one of the lower bank rates.

But people don't because unlike me they do want a new car every three years. Theyre happy to spend money they haven't got on a vehicle they cant afford to impress people they've never met. Theyre eejuts.

But thats fine really. If people arent prepared to take the strategic view of their finances and are happy to spend unnecessary sums every month, year upon years, over many decades, that's absolutely up to them. Its entirely their business. But dont expect me to care when they bleat about stuff like not being able to afford the deposit on a house, or being skint again a week after pay day, etc.

PCP is the crack,cocaine of finance, once youre in it becomes financially difficult to get out, and the whole cycle perpetuates.

People take a very short term, not even tactical view of their finances. Most things people buy today will not be in their possession in 5 years time, but theyre beggaring themselves to acquire it all. If they were sensible then by the time theyre my age they will be able to afford to drop 50k on a car, boat, call girls, etc, but instead they'll be moaning about having ti work into their 70s to pay for it all.

Life choices.

 

[Pblakeney]

Or wait for a sales lull when dealers are needing to shift new vehicles and will heavily discount so that can meet there targets. Towards the end of a financial quarter is a good time.

Or do both. One dealer near me had their monthly targets board on display. It was easy to pick the best time to buy, even used.

 

[Pblakeney]

Yet people can afford to pay PCP, the far more expensive option.

If you cant afford the chunk get a Tesco loan and do it that way, likely one of the lower bank rates.

But people don't because unlike me they do want a new car every three years. Theyre happy to spend money they haven't got on a vehicle they cant afford to impress people they've never met. Theyre eejuts.

But thats fine really. If people arent prepared to take the strategic view of their finances and are happy to spend unnecessary sums every month, year upon years, over many decades, that's absolutely up to them. Its entirely their business. But dont expect me to care when they bleat about stuff like not being able to afford the deposit on a house, or being skint again a week after pay day, etc.

PCP is the crack,cocaine of finance, once youre in it becomes financially difficult to get out, and the whole cycle perpetuates.

People take a very short term, not even tactical view of their finances. Most things people buy today will not be in their possession in 5 years time, but theyre beggaring themselves to acquire it all. If they were sensible then by the time theyre my age they will be able to afford to drop 50k on a car, boat, call girls, etc, but instead they'll be moaning about having ti work into their 70s to pay for it all.

Life choices.

Prime example is us, and a couple down the road. Similar ages, similar incomes, identical houses. We save and buy, they PCP and use tick.
We are retired while they are still working, and it is not out of choice. They do have a shiny new car on the drive though.

 

[Drago]

And the beauty is that now I can waste money on all the sheet, the stupid mobile phones, the Costa coffee on a whim, expensive basses, and drop cash for ot all.

35 years of diligence, restraint and forebearance means I can do all that nonsense - and it is nonsense in the grand scheme - and not have to get a penny in hock to do it. Best of all I have an extra two decades of retirement with which to enjoy doing it.

But if schmucks want to keep doing the same thing over and over again and never learn the lesson then be my guest. Someone has to serve me my Costa collect my bins, and it may as well be them.

The last band I played in, we were all in our 50s bar the singist, who was late 40s. Four of us were sensible, hadn't chucked money away on crazy finance and unnecessary crap in our earlier years and were retired (one owned a pub, but that was as much a hobby and social thing as he didnt need that income to live on.)

However, the singist had a 6 bed house for the three of them... on an interest only mortgage! BMW X6 and an XC90 on the tick, all the flash holidays and stuff, but he,didn't actually own anything. He was a nice guy and I would chat to him and I could tell the strain of it all was going to kill him one day. Just after the band folded the company he worked for (he was a director for Body Shop) also folded and I often wonder if the whole teetering edifice he had created came tumbling down.

 

[Bonefish Blues]

I endorse that message

Our IFA said we should spend more money now we've retired. We're finding it surprisingly difficult to get out of old habits (but we do have a shiny new car on the drive, replacing a 14yo one - on lease - but it's all built into his/our plans!)

 

[geocycle]

After much head scratching we went for PCP for funding the Renault 4. The main reasons were we were unsure about whether an ev would suit us (it does !), what to look out for in terms of features and whether tech changes over three years could cause significant depreciation. Next time around I will be more prepared to pay cash as we have done with all our cars in the past.

We took the R4 out in the wild last week on a tour of Scotland. It’s a brilliant car, perfect size for us and very nice to drive. Getting used to charging away from home was another learning experience but it soon became easy to build into our days.